French consumer confidence sticks at nine-year high

Posted on November 25, 2016

The French consumer is showing few signs of jitters ahead of the presidential election next year.

Consumer confidence in the eurozone’s second largest economy remained at a nine-year high this month at 98 – the same level hit in October – on the back of a healthy outlook for living standards among French households.

The survey, carried out by stats agency Insee, found households fears of unemployment fell from 40 to 29, while inflation expectations over the next 12 months also slipped, compared to October.

Consumer confidence remains below its long-term average of 100 but climbed above its post-financial crisis high earlier this year.

It comes after Europe’s largest economy Germany saw one of its closely-watched consumer confidence gauges climb stronger than expected this month.

Consumers have been driving the eurozone’s moderate economic recovery over the past 12 months and are set to enjoy the benefits of still low inflation well into next year, according to calculations from the European Central Bank.

France heads for a key presidential election in April next year. The country’s opposition centre-right Republican party will be nominating its presidential candidate at a second round vote between two former prime ministers on Sunday.

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